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Drishti IAS - English (Information & Motivation)
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The correct answer is option (c).
Explanation⬇️
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note and held in a dematerialized form through any of the depositories approved by and registered with SEBI. CP can be issued for maturities between a minimum of 15 days and a maximum upto one year from the date of issue. Hence, statement 1 is correct.
Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note, for funds deposited at a bank or other eligible financial institution for a specified time period. CDs can be issued by:
Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs); and selected All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI. Hence, statement 2 is not correct.
Call money is a short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Hence, statement 3 is correct.
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Hence, statement 4 is not correct.
Therefore, option (c) is the correct answer.
Explanation⬇️
Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note and held in a dematerialized form through any of the depositories approved by and registered with SEBI. CP can be issued for maturities between a minimum of 15 days and a maximum upto one year from the date of issue. Hence, statement 1 is correct.
Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note, for funds deposited at a bank or other eligible financial institution for a specified time period. CDs can be issued by:
Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs); and selected All-India Financial Institutions (FIs) that have been permitted by RBI to raise short-term resources within the umbrella limit fixed by RBI. Hence, statement 2 is not correct.
Call money is a short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Hence, statement 3 is correct.
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value. Hence, statement 4 is not correct.
Therefore, option (c) is the correct answer.
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Drishti IAS - English (Information & Motivation)
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The correct answer is option (a) Be familiar with literature on the topic.
Explanation: Social research involves the study of social trends, dynamics and principles that exist among individuals and within societies. When proceeding with social research, it is crucial to be familiar with the literature pertaining to the particular topic after one has identified the research problem.
Explanation: Social research involves the study of social trends, dynamics and principles that exist among individuals and within societies. When proceeding with social research, it is crucial to be familiar with the literature pertaining to the particular topic after one has identified the research problem.
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